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"Read that whole thread carefully before you decide whether or not you're willing to spend ~$150, the equivalent of a month's Starbucks habit, to do business as
by georgemcbay 14y ago
"Read that whole thread carefully before you decide whether or not you're willing to spend ~$150, the equivalent of a month's Starbucks habit, to do business as an LLC with contract liability protection."
YMMV on the $150. In California that covers the upfront costs for setting up an LLC, but be aware that one year later (and each year after that until you dissolve the LLC) you will receive a tax bill from the state of $800, regardless of whether or not your LLC made a penny.
- tisme 14y ago$150 or $1000 might be enough to swing the decision about where to incorporate for some instances but for most that is a rounding error. And anyway, all expenses that you are going to have should be part of your businessplan when you're at the go/no go stage. If $800 scares you then you're not doing business.
- georgemcbay 14y agoI don't disagree that the difference between $150 and $1000 isn't a huge deal for any serious venture, but the topic of this conversation covers a wide range of possible levels of seriousness and some people suggest always incorporating even for goofing-around projects but those people never go into the fact that incorporating in some states will cost you some serious dough in minimum yearly taxes.
- staunch 14y agoAnd lest you think you can avoid that fee (a "franchise tax") by incorporating in a different state, it applies to any company operating in California